India's long overdue low-carbon development plan may see light

India is planning to announce its first nationwide long-term, low-carbon development strategy later this year, something that major emitters like China, Europe, and the United States have in place, according to a senior official involved in the climate plan.

- S DINAKAR

The country's emission-mitigation plan, which begins in 2040 and stretches till 2070, the deadline for "zero emission", will be underpinned by the first set of official numbers to be released by a top committee constituted by the NITI Aayog in April last year, offering multiple scenarios for transitioning to net zero by 2070 from 2040 onwards, the official said.

The climate strategy may pave the path to a national carbon budget, an element critical in achieving net zero, but increase costs for companies transitioning to low-emission strategies, industry officials said.

"India has an opportunity to turn its climate goals into engines of economic growth — but to do so, it needs enabling policies supported by a clear national carbon budget," said Viral Thakker, partner and leader (sustainability and climate), Deloitte South Asia.

"Such a budget would provide a long-term signal to industries and investors, helping to prioritise resources and scale up solutions like green hydrogen, sustainable aviation fuels, and low-carbon manufacturing."

A carbon budget also allows the government to allocate scarce carbon resources to states and sectors more effectively, devolving carbon responsibilities for a more credible net zero. But Indian officials must accelerate developing low-carbon policies because of its unenviable position as the fastest-growing major emitter on an absolute basis, a senior official from the United Nations Framework Convention on Climate Change (UNFCCC), the UN's climate change department, told Business Standard at the Asia Climate Summit in Bangkok.